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Divisional Income Statements and Return on Investment Analysis E . F . Lynch Company is a diversified investment company with three operating divisions organized as
Divisional Income Statements and Return on Investment Analysis EF Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June Y are as follows: Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $ $ $ Operating expenses Invested assets The management of EF Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: Question Content Area Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. EF Lynch Company Divisional Income Statements For the Year Ended June Y Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $fill in the blank dffbfeb $fill in the blank dffbfeb $fill in the blank dffbfeb Operating expenses fill in the blank dffbfeb fill in the blank dffbfeb fill in the blank dffbfeb Income from operations $fill in the blank dffbfeb $fill in the blank dffbfeb $fill in the blank dffbfeb Feedback AreaUsing the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to one decimal place. When faced with limited funds for expansion, management should consider an expansion of the Electronic Brokerage Division first.
Divisional Income Statements and Return on Investment Analysis
EF Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June Y are as follows:
Mutual Fund Division
Electronic Brokerage Division
Investment Banking Division
Fee revenue $ $ $
Operating expenses
Invested assets
The management of EF Lynch Company is evaluating each division as a basis for planning a future expansion of operations.
Required:
Question Content Area
Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges.
EF Lynch Company
Divisional Income Statements
For the Year Ended June Y
Mutual Fund Division Electronic Brokerage Division Investment Banking Division
Fee revenue $fill in the blank dffbfeb
$fill in the blank dffbfeb
$fill in the blank dffbfeb
Operating expenses fill in the blank dffbfeb
fill in the blank dffbfeb
fill in the blank dffbfeb
Income from operations $fill in the blank dffbfeb
$fill in the blank dffbfeb
$fill in the blank dffbfeb
Feedback AreaUsing the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round
your answers to one decimal place.
When faced with limited funds for expansion, management should consider an expansion of the Electronic Brokerage Division first.
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